In general, the process for a customer to join a loyalty program for a merchant is based on the user registering with the merchant to obtain a customer identifier. Thereafter, the customer can present the customer identifier each time the customer visits the merchant so that the transaction is associated with the registered customer. In some cases, the merchant can use the customer identifier to collect information regarding a registered customer's various transactions with the merchant. Thereafter, the merchant can identify purchase recommendations for the customer based on their previous transactions or even offer rewards or discounts for future transactions to the customer.
With respect to providing recommendations to customers, a major limitation is that conventional loyalty card programs rely on the customer presenting his loyalty card during each and every visit. Often, customer may not have their loyalty card on their person or may simply forget to present the card. Even worse, a customer may have various loyalty cards. Further, some loyalty cards or loyalty card accounts may be shared by several customers. Thus the data collected during past uses of a loyalty card may be inaccurate in many cases.
Another major limitation of existing loyalty programs is that merchants are generally limited with regards to how to identify new customers for the loyalty program. Typically, merchants use conventional advertising methods. For example, the merchants can place advertisements, in print or electronic, regarding such loyalty programs to a targeted demographic group in the hope that it reaches an interested customer. In other cases, the agents of the merchant can contact customers currently at the merchant's establishment and inquire their status regarding the merchant's loyalty program. In the case they have not joined, the agents can offer the customer chance to do so. However, such methods are generally inefficient, as they are designed to target the public at large and not those customers who could take advantage of the loyalty program or who have a high interest in the loyalty program.